Q results Frankfurt am Main, 14 th August 2017

Transcription

1 Q results Frankfurt am Main, 14 th August 2017 Borislav Kostadinov, Member of the Management Board Jana Donath, Manager Finance and Controlling

2 ProCredit A unique approach to banking Summary Key figures H and FY 2016 A profitable, development-oriented commercial banking group for SMEs with focus on South Eastern Europe and Eastern Europe Headquartered in Frankfurt and supervised by the German Federal Financial Supervisory Authority (BaFin) and Deutsche Bundesbank Total assets EUR 5,552m EUR 5,668m Customer loan portfolio (1) EUR 3,801m EUR 3,629m Deposits/loans (2) 89% 96% Mission of promoting sustainable development with ethical corporate culture and long-term business relationships Number of employees (1) 3,658 Profit of the period EUR 24m RoAE 7.0% (3) Track record of high quality loan portfolio 4,078 EUR 61m 9.6% Profitable every year since creation as a banking group in 2003 Listed at Frankfurt Stock Exchange since Dec-16 Approved member of the Social Stock Exchange since May-17 CET1 ratio (fully loaded) 13.0% 12.4% Rating (Fitch) BBB (stable) (4) Geographical distribution Reputable development-oriented shareholder base South Eastern Europe and Eastern Europe (ca. 91% of gross loan portfolio) South America (7) (ca. 7% of gross loan portfolio) Germany (ca. 2% of gross loan portfolio) Discontinued operations Notes: As of 31 December 2016 and as of 30 June 2017; (1) Continuing operations only; (2) Customer deposits divided by customer loan portfolio; (3) Annualised; (4) Full Rating Report as of ; (5) Shareholders of the general partner entity (does not include ProCredit Staff Invest 3 GmbH & Co. KG); (6) Aggregate of different investment entities; (7) The South America segment also includes the institution Administración y Recuperación de Cartera Michoacán S. A (ARDEC) in Mexico, 0.2% of Group assets. Note: Shareholder structure according to the voting right notifications as published on our website Investors with shareholdings >3% to <5% Core shareholders: 61% shareholding (5) (6) (6) Zeitinger Invest, KfW, DOEN, IFC, ProCredit Staff Invest 2

3 Hausbank for SMEs serving their typical banking needs Ukraine Products Simple loan and deposit products Comprehensive service as Hausbank Customers Target customers with high potential: SMEs Value-added Significant benefits for clients Full range of business loans (loan size range typically EUR 30k to EUR 3m) Deposits SMEs with formalised structures and sustainable business models Focus on agriculture and manufacturing Yearly revenues between EUR 50k to over EUR 2m Access to full range of relevant banking services Valuable in countries with high level of informality and lack of transparency Trustful long-term relationships Supplementary financial services Typical SME client (Serbia) and for ProCredit E-banking Card services Liquidity management Documentary business Personal banking services Vegetable cultivation (300 ha, 31 FTEs) Long-term relationship Regular financing of working capital and fixed assets Most recent project: Solar panels to power irrigation of agricultural land Loan volume PCB Total financing since 2011 Outstanding loan amount EUR 864k EUR 549k Credit limit short-term long-term total limit EUR 150k EUR 600k EUR 750k Utilisation of PCB services Current account (EUR, RSD) Domestic and International payments e-banking Revenue Account turnover EUR 70k (monthly) EUR 103k (monthly) Understanding of clients financial needs and risks Additional stable revenues Customer deposits 3

4 Agenda A Highlights B Financial development C Asset quality D Balance sheet, capital and funding Q&A Appendix 4

5 Where do we come from? Significant progress since 2013 Focused growth in SME loan categories (1) Decrease in number of cash desk transactions 58% 81% 85% 28% 5% 2% Dec-13 Dec-16 Jun-17 Loan portfolio > EUR 30k in % total loan portfolio Regional focus on South Eastern Europe and Eastern Europe Dec-13 Dec-16 Jun-17 YTD Cash desk transactions in % total transactions Decrease in number of total group staff 71% 89% 91% 11,514 4,078 3,658 Dec-13 Dec-16 Jun-17 SEE and EE as % of gross loan portfolio Decrease in overall branch network Dec-13 Dec-16 Jun-17 Number of total group staff Increase in loan portfolio per total group staff 890 1,039 (in EUR k) 363 Note: All related figures and ratios for Dec-13 relate to the subsidiaries as shown in the consolidated financial statement as of 2013; (1) Loan portfolio > EUR 30k initial loan size in % of customer loan portfolio by outstanding principal Dec-13 Dec-16 Jun-17 Gross loan portfolio per total group staff 5

6 Recent key achievements Execution of business client strategy Very strong growth with target SME clients in Eastern Europe (+10.8% loan portfolio growth > EUR 30k in H1 2017) On track for sharp business profile as modern SME bank for Eastern Europe: Announced successful sale of Banco ProCredit Nicaragua 91% of loan portfolio with SMEs and SEE/EE segments Further decreased branch and service point network Increased automation using state-of-the-art IT infrastructure Execution of private client strategy Implementation of a simple, unified offer for target private clients (entrepreneurs, middle-income clients) accessible above all via relevant electronic channels Successful roll-out of IR activities PCH at analyst and investor conferences 2017 YTD: Oddo Seydler 11th German Conference, Impact Summit Europe 2017, DVFA Spring Conference, ESN 33rd European Conference, Berenberg Pan-European Discovery Conference 2017 to come: DVFA Autumn Conference, Berenberg and Goldman Sachs 6th German Corporate Conference, Deutsche Börse German Equity Forum Picture provided by Impact Summit Europe 2017 Continued external recognition and certification Provision of additional EUR 450 million by the European Investment Fund (EIF) and ProCredit Group to innovative small and medium-sized companies Confirmation of BBB rating by Fitch for ProCredit Holding ISO certification almost completed for ProCredit institutions (15 of our 16 institutions already certified) 6

7 Update on implementation of digital private client offer Reduction of branches and service points Since Dec. 2013, reduction of total number of branches and service points by more than 70% Client advisers with clear focus on customer acquisition and consultation A simple, unified offer for target private clients (entrepreneurs, middle-income clients) accessible above all via relevant electronic channels Modernisation of branches and service points Automation of cash transactions via 24/7 self-service zones Cash desk operations almost completely eliminated Digitalisation of our offer for private clients Target middle and high-income clients interested in modern banking services Straightforward deposit and credit facilities as well as account services 7

8 Strong volume growth in core loan categories H % (EUR -115m) 10% (EUR +290m) +5% Initial loan size (in EUR) FY 2016 EUR 151m EUR 405m -28% (EUR -256m) 13% (EUR +336m) +2% (in EUR m) Initial loan size (in EUR k) Note: Loan volume growth split by initial loan size in all segments 8

9 Outlook for ProCredit Group 2017 Growth of the gross loan portfolio in the target loan categories (>EUR 30,000) > 10% Growth of the total gross loan portfolio > 8% Return on average equity (RoAE) 7 9% CET1 ratio (fully loaded) > 13% Dividend payout ratio 1/3 of profits In the mid-term, and taking into consideration a stabilising political, economic and operating environment, we see potential for ca. 10% p.a. growth of the gross loan portfolio, a cost income ratio (CIR) < 60%, and a return on average equity (RoAE) of ca. 10% 9

10 Agenda A Highlights B Financial development C Asset quality D Balance sheet, capital and funding Q&A Appendix 10

11 Q results at a glance (In EUR m) H H Q Q y-o-y Income statement Key performance indicators Additional indicators Net interest income % Provision expenses % Net fee and commission income % Net result of other operating income n.m. Operating income % Operating expenses % Operating results % Tax expenses % Profit from continuing operations % Profit from discontinued operations % Profit of the period % Change in loan portfolio > EUR 30, % 9.9% 4.9% 4.7% -0.2pp Return on average equity (1) 9.5% 7.0% 7.0% 6.9% -0.1pp CET1 ratio (fully loaded) 10.3% 13.0% 12.3% 13.0% 0.7pp Net interest margin (1) 4.9% 4.0% 4.0% 4.0% 0.0pp Net write-off ratio (1)(2) 0.4% 0.2% -0.1% 0.2% 0.3pp Loans in PAR30 4.9% 3.7% 4.1% 3.7% -0.4pp Impaired loans 8.0% 5.8% 6.3% 5.8% -0.5pp Cost-income ratio 67.8% 75.1% 73.8% 76.4% 2.6pp Book value per share % Note: P&L related figures and ratios, unless indicated otherwise, are based on continuing operations; i.e. excluding Banco PyME Los Andes ProCredit Bolivia, ProConfianza Mexico, Banco ProCredit El Salvador and Banco ProCredit Nicaragua for 2017 and 2016; Return on average equity, CET1 ratio, and dividend payout ratio include as well discontinued operations; (1) Annualised; (2) Net write-off ratio presented always YTD; 11

12 Net interest income Net interest income development stabilising in Q Decreasing interest expenses fully compensated for decline in interest income on group level Interest income in Eastern Europe increasing in Q2 2017, portfolio growth more than compensated for declining average portfolio return 4.8% 4.6% 4.4% 4.0% 4.0% Strategic focus on SME clients is associated with significant positive effects on both risk and operating costs (in EUR m) Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Net interest income Net interest margin 12

13 Provisioning expenses 51 bps Allowances for losses on loans and advances to customers (LLP) continues to be on low levels with comfortable PAR 30 coverage ratio (104%) 4.5 Decrease in LLP/cost of risk driven by improved loan portfolio quality and recovery of written-off loan portfolio 33 bps 32 bps bps (in EUR m) 5 bps 0.5 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Allowance for losses on loans and advances to customers Cost of risk (1) Notes: (1) Cost of risk defined as allowances for losses on loans and advances to customers, divided by average customer loan portfolio; Annualised 13

14 Net fee and commission income Increase in account maintenance and card transaction income compensated for declining fee income from cash transactions Continuous strong increase of net fee and commission income per client (in EUR m) Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Net fee and commission income 14

15 Operating expenses Operating expenses below average FY 2016 levels Cost base influenced by One-off expenses related to reduction of branch network Increased average salaries in line with SME strategy Strong IT investments e.g. private cloud infrastructure in Germany, centralisation of IT activities at Quipu, increased software development activities, information and event monitoring, and data analytics Efficiency gains from branch and service point closures are expected to be realised going forward 15

16 Contribution of segments to group net income H Group functions, e.g. risk management, reporting, capital management, liquidity management, training and development Includes ProCredit Holding, Quipu, ProCredit Academy Fürth, ProCredit Bank Germany (EUR 85m customer loan portfolio; EUR 164m customer deposits) Profit contribution (after tax of EUR 2.8m) from entities in El Salvador and Nicaragua. Banco ProCredit Nicaragua was sold in Aug 2017 (in EUR m) Customer loan portfolio (EUR m) 2, ,801 H loan growth > EUR 30k +9.6% +14.6% -4.6% +9.9% Loans in arrears (PAR 30) 3.5% 3.0% 8.9% 3.7% Cost-income ratio (YTD) 66.0% 48.7% 124.0% 75.1% ROAE (YTD) (1) 11.3% 12.6% -5.5% 7.0% Note: (1) Annualised 16

17 Agenda A Highlights B Financial development C Asset quality D Balance sheet, capital and funding Q&A Appendix 17

18 Structure of the loan portfolio Eastern Europe: 21% 8% Loan portfolio by geographical segments South America: 7% 3% 6% 1% 2% Germany: 2% 18% South Eastern Europe: 70% Private loans: 10% 19% Loan portfolio by sector 7% 2% Business loans: 90% 10% 17% 4% 5% 71% 6% 13% 7% Bulgaria Serbia Kosovo Macedonia Romania Albania Bosnia Ukraine Georgia Moldova Ecuador Colombia Mexico Germany Business loans Housing loans Agricultural loans Other private client loans Notes: Loan portfolio by geographical segments and by sector in % of total customer loan portfolio (EUR 3,801m as per 30-Jun-17) 18

19 Structure of the loan portfolio (continued) Loan portfolio by initial loan size Loan portfolio by currency Segment loan size < EUR 30k: 15% 11% 4% 10% Segment loan size > EUR 30k: 85% 35% 11% 26% 51% 26% 12% EUR 30-50k EUR k EUR k EUR 250-1m > EUR 1m EUR 10-30k < EUR 10k 14% EUR USD Other currencies Notes: Loan portfolio by initial loan size in % of total outstanding principal (EUR 3,778m as per 30-Jun-17); loan portfolio by currency in % of net loan portfolio (EUR 3,656m as per 30-Jun-17) 19

20 Loan portfolio quality Net write-offs (1) 0.7% 0.2% Favourable net write-off development due to high recoveries in Q Coverage ratio impaired (2) 66% 66% Further improvement in portfolio at risk (PAR) Coverage ratio PAR30 (3) 106% 104% 6.3% Prudent risk management underlined by high coverage ratios 2.4% 2.1% 5.8% Continuous monitoring of loan portfolio, with PAR 90, PAR 30, and impaired loans as key reporting triggers PAR 30 PAR % 3.9% 3.4% 0.7% 3.7% 3.0% Very conservative definition of impaired loans, including PAR % 3.0% Dec-16 Jun-17 Other signs of impairment PAR days PAR 90+ days Notes: (1) Net write-offs to customer loan portfolio ratio, annualised; (2) Allowances for losses on loans and advances to customers divided by impaired loan portfolio; (3) Allowances for losses on loans and advances to customers divided by PAR 30 loan portfolio 20

21 Structure of collateral Collateral by type Majority of collateral consists of mortgages 23% Clear and strict requirements regarding types of acceptable collateral, legal aspects of collateral and insurance of collateral items Standardised collateral valuation methodology 5% 1% Regular monitoring of the value of all collateral and a clear process of collateral revaluation, also by external, independent experts Verification of external appraisals and regular monitoring activities carried out by specialist staff members 71% Total: EUR 2.7 bn Mortgages Cash collateral Financial guarantees Other 21

22 Development of green loan portfolio Green loan portfolio growth 3.0% 4.0% 6.4% 9.1% 10.1% Strong growth of the green loan portfolio (38% p.a ) Includes credit products for investments in (in EUR m) Energy efficiency Renewable energies Other environmentally-related activities Dec-13 Dec-14 Dec-15 Dec-16 Jun-17 Business clients Private clients % of total loan portfolio Structure of green loan portfolio 19% New ambitious target: 15% of the total loan portfolio (currently at 10.1%) 7,389 outstanding credit exposures 12% 69% Largest part of green loan portfolio to finance energy efficiency measures (69%) Very high portfolio quality; PAR 30 ratio for the portfolio at 0.5% Energy efficiency Renewable energy Other green investments 22

23 Agenda A Highlights B Financial development C Asset quality D Balance sheet, capital and funding Q&A Appendix 23

24 Asset reconciliation Reduction of surplus liquidity (cyclical Q1 effect and sale of Banco Los Andes ProCredit Bolivia) Strong growth in core loan segment + EUR 290m; further decline in loans < EUR 30k 24

25 Liabilities and equity reconciliation Decrease driven by seasonal decline of current account balances in Q Repayment of maturing liabilities in Q

26 Liquidity update Liquidity coverage ratio 194% Adequate group liquidity situation Dec-16 70% 112% 80% Jun-17 All ratios comfortably above limits Liquidity decrease in Q2 is due to strong loan portfolio growth, deposit base adjustment process and HLA adjustments in line with new regulatory requirements LCR ratio Regulatory minimum Highly liquid assets (HLA) and HLA ratio 32% 20% 1.1 (in EUR bn) 0.7 Dec-16 Highly liquid assets (< 1 month) Jun-17 HLA ratio 26

27 Regulatory capital and risk-weighted assets Overview of capitalisation in EUR m Dec-16 Jun-17 CET1 capital (net of deductions) Additional Tier 1 capital (net of deductions) 0 0 Tier 1 capital Tier 2 capital Total capital RWA total 4,603 4,546 o/w Credit risk 3,446 3,528 o/w Market risk (currency risk) o/w Operational risk o/w CVA risk 1 1 Increase of CET1, Total Capital and Leverage ratios Q profits recognised (after Annual General Meeting) Tier 1 capital currently consisting of CET1 capital only RWA mainly comprise credit risk (78% of total RWA) CET1 capital ratio 12.5% 13.0% Total capital ratio 15.7% 16.0% Leverage ratio 9.9% 10.4% CET1 capital ratio (fully loaded) 12.4% 13.0% Total capital ratio (fully loaded) 15.4% 15.9% Leverage ratio (fully loaded) 9.8% 10.3% 27

28 Development of CET1 capital ratio (fully loaded) Leverage ratio (fully loaded) 10.3% 28

29 Agenda A Highlights B Financial development C Asset quality D Balance sheet, capital and funding Q&A Appendix 29

30 Q&A ProCredit Bank Romania 30

31 Agenda A Highlights B Financial development C Asset quality D Balance sheet, capital and funding Q&A Appendix 31

32 Strong volume growth in core loan categories H vs H H % (EUR -115m) 10% (EUR +290m) +5% Initial loan size (in EUR) H EUR 151m EUR 405m -12% (EUR -115m) 6% (EUR 152m) 1% Initial loan size (in EUR) EUR 229m EUR 582m Note: Loan volume growth split by initial loan size in all segments 32

33 Overview of quarterly financial development (In EUR m) Q Q Q Q Q Income statement Key performance indicators Additional indicators Net interest income Provision expenses Net fee and commission income Net result of other operating income Operating income Operating expenses Operating result Tax expenses Profit from continuing operations Profit from discontinued operations Profit of the period Change in loan portfolio > EUR 30, % 1.8% 4.8% 4.9% 4.7% Return on average equity (1) 12.0% 3.9% 16.1% 7.0% 6.9% CET1 ratio (fully loaded) 10.3% 10.6% 12.4% 12.3% 13.0% Net interest margin (1) 4.8% 4.6% 4.4% 4.0% 4.0% Net write-off ratio (1) 0.4% 0.6% 0.7% -0.1% 0.2% Loans in PAR30 4.9% 4.7% 3.9% 4.1% 3.7% Impaired loans 8.0% 7.7% 6.3% 6.3% 5.8% Cost-income ratio 71.4% 68.9% 78.1% 73.8% 76.4% Note: P&L related figures and ratios, unless indicated otherwise, are based on continuing operations; i.e. excluding Banco PyME Los Andes ProCredit Bolivia, ProConfianza Mexico, Banco ProCredit El Salvador and Banco ProCredit Nicaragua for 2017 and 2016; Return on average equity and CET1 ratio include as well discontinued operations; (1) Annualised 33

34 Segment South Eastern Europe Regional loan portfolio split Romania 9% Macedonia 10% Albania 6% Bosnia 6% Bulgaria 26% Key financial data (in EUR m) H H Net interest income Provision expenses Net fee and commission income Net result of other operating income Operating income Operating expenses Operating result Kosovo 19% Loan portfolio growth (1) Serbia 24% Total: EUR 2,672m (70% of gross loan portfolio) 2,480 2,655 Tax expenses Profit of the period Change in loan portfolio > EUR 30, % 9.6% Deposits to loans ratio (2) 94.4% 89.6% (in EUR m) 76% 83% 24% 17% Jun-16 Jun-17 Loan portfolio < EUR 30k Loan portfolio > EUR 30k Net interest margin (3) 4.7% 3.7% Cost-income ratio 57.8% 66.0% Loans in PAR30 4.6% 3.5% Coverage ratio PAR % 102.5% Return on average equity (3) 13.7% 11.3% Notes: (1) By initial loan amount; (2) Customer deposits divided by customer loan portfolio; (3) Annualised. 34

35 Segment Eastern Europe Regional loan portfolio split Moldova 13% Key financial data (in EUR m) H H Net interest income Provision expenses Ukraine 46% Net fee and commission income Net result of other operating income Operating income Operating expenses Georgia 41% Loan portfolio growth (1) (in EUR m) Total: EUR 792m (21% of gross loan portfolio) % 83% 24% 17% Jun-16 Loan portfolio < EUR 30k 789 Jun-17 Loan portfolio > EUR 30k Notes: (1) By initial loan amount; (2) Customer deposits divided by customer loan portfolio; (3) Annualised Operating result Tax expenses Profit of the period Change in loan portfolio > EUR 30, % 14.6% Deposits to loans ratio (2) 89.4% 82.0% Net interest margin (3) 6.1% 5.2% Cost-income ratio 46.4% 48.7% Loans in PAR30 4.8% 3.0% Coverage ratio PAR % 148.3% Return on average equity (3) 16.8% 12.6% 35

36 Segment South America Regional loan portfolio split Colombia 12% Mexico 4% Key financial data (in EUR m) H H Net interest income Provision expenses Net fee and commission income Net result of other operating income Operating income Operating expenses Operating result Tax expenses Ecuador 84% Total: EUR 252m (7% of gross loan portfolio) Loan portfolio growth (1) Profit of the period Change in loan portfolio > EUR 30, % -4.6% Deposits to loans ratio (2) 55.6% 67.2% (in EUR m) 76% 24% Jun-16 Loan portfolio < EUR 30k 83% 17% Jun-17 Loan portfolio > EUR 30k Net interest margin (3) 5.3% 4.8% Cost-income ratio 101.8% 124.0% Loans in PAR30 8.9% 8.9% Coverage ratio PAR % 59.6% Return on average equity (3) -3.6% -5.5% Notes: (1) By initial loan amount; (2) Customer deposits divided by customer loan portfolio; (3) Annualised 36

37 Funding and rating update Funding sources overview 4% 3% 1% 8% 10% Customer deposits Liabilities to IFIs Liabilities to banks Debt securities Subordinated debt Other liabilities Highly diversified funding structure and counterparties Customer deposits main funding source, accounting for 74% as of Jun-17 Supplemented by long-term funding from IFIs and institutional investors High and stable self-funding ratio of 89% 74% Rating: Self funding ratio development Total liabilities (1) : EUR 4.5bn 96% 89% ProCredit Holding and ProCredit Bank in Germany: BBB (stable) by Fitch ProCredit Banks: At or close to sovereign IDR; Local banks in Macedonia and Georgia are even rated above the sovereign IDR Dec-16 Jun-17 Notes: (1) Total liabilities excluding liabilities related to assets held for sale (EUR 352m as of 30-Jun-17) 37

38 Sustainability overview Continued focus on transparent reporting Advanced disclosure including e.g.: Annual Environmental Performance Report 2016 Environmental Statement for the ProCredit institutions located in Germany Group Environmental Management Policy Further documents on the group s approach to managing environmental and social risks in lending Preparation for reporting under GRI Standards as of reporting year 2017 Significantly reduced ecological footprint (3) Yearly absolute energy consumption down by 11% yoy Yearly absolute greenhouse gas emissions down by 13% yoy Energy consumption per floor area kwh/m 2 down by 2% yoy Paper use down by 30% yoy; paper use per employee kg/pp down by 15% yoy Continued focus on employee training (3) ~49,900 person-days of trainings (1) 527 graduates and participants from the Management and Banker Academy ~3,540 person-days of environmentally related trainings (2) External certification ISO certification completed for most of the ProCredit banks EU Eco-Management and Audit Scheme (EMAS) certification for ProCredit s Germany-based institutions in addition to ISO Corporate Responsibility Prime rating by oekom research Note: (1) Entry Programme, Group Workshops, Management Academy, Banker Academy, English course (2) Local trainings at 12 banks, academy environmental blocks, workshops, Entry Programme environmental block (3) Data is shown as end of Dec 16 38

39 Social Stock Exchange Membership ProCredit Holding Impact Report 2016 Approval as member of the Social Stock Exchange (SSX) following the ratification of the Impact Report by the independent SSX Admissions Panel in May-17 Impact Report details the social impact of the group focusing on three main areas of positive impact: 1 Providing financial services for SME 2 Enhancing environmental awareness 3 clients in transition countries and protection in transition economies Developing human resources in transition economies 98% of our loan portfolio is in development or transition countries (in terms of volume). Business and agricultural loan portfolio volume by environmental risk category Number of female staff in management positions Non-performing loan (NPL) ratios of selected ProCredit banks (31 Dec. 2016) (31 Dec. 2016) Amount invested in staff training ProCredit banks monitor the environmental and social risk of their SME loan portfolio; more than half of the group s loan portfolio is in the low environmental and social risk category. Hours of English courses delivered Source: ProCredit Impact Report

40 Balance sheet (in EUR m) Dec-16 Jun-17 Assets Cash and cash equivalents Loans and advances to banks Financial assets at fair value through profit or loss 0 0 Available-for-sale financial assets Loans and advances to customers 3,629 3,801 Allowance for losses on loans and advances to customers Property, plant and equipment Other assets Assets held for sale Total assets 5,668 5,552 Liabilities Liabilities to banks Financial liabilities at fair value through profit or loss 1 1 Liabilities to customers 3,475 3,377 Liabilities to International Financial Institutions Debt securities Other liabilities Subordinated debt Liabilities related to assets held for sale Total liabilities 5,014 4,900 Equity Subscribed capital Capital reserve Legal reserve 0 0 Retained earnings Translation reserve Revaluation reserve 0 0 Equity attributable to ProCredit shareholders Non-controlling interests 8 9 Total equity Total equity and liabilities 5,668 5,552 40

41 Income statement by segment (in EUR m) Germany Eastern Europe South Eastern Europe South America Consolidation Group Interest and similar income of which inter-segment Interest and similar expenses of which inter-segment Net interest income Allowance for losses on loans and advances to customers Net interest income after allowances Fee and commission income of which inter-segment Fee and commission expenses of which inter-segment Net fee and commission income Result from foreign exchange transactions Net result from financial instruments at fair value through profit or loss Net result from available-for-sale financial assets of which inter-segment Net other operating income of which inter-segment Operating income Personnel expenses Administrative expenses of which inter-segment Operating expenses Profit before tax Income tax expenses Profit of the period from continuing operations Profit of the period from discontinued operations 2.8 Profit of the period Profit attributable to ProCredit shareholders 22.7 Profit attributable to non-controlling interests 0.9 Note: Banco ProCredit El Salvador and Banco ProCredit Nicaragua shown as discontinued operations 41

42 Information regarding financial figures in this presentation Q2 2017: Financial data for six-month period ended June 30, 2017, as shown in the unaudited quarterly financial report ended June 30, 2017 Entities classified as discontinued operations include Banco ProCredit El Salvador and Banco ProCredit Nicaragua in the balance sheet-related information and in the profit and loss-related information. Previous period financial data for six-month period ended June 30, 2016 also include ProConfianza Mexico and Banco Pyme Los Andes ProCredit Bolivia. Q1 2017: Financial data for three-month period ended March 31, 2017, as shown in the unaudited quarterly financial report ended March 31, 2017 Entities classified as discontinued operations include Banco ProCredit El Salvador and Banco ProCredit Nicaragua in the balance sheet-related information and in the profit and loss-related information. Previous period financial data for three-month period ended March 31, 2016 also include ProConfianza Mexico and Banco Pyme Los Andes ProCredit Bolivia. FY 2016: Financial data for the fiscal year ended December 31, 2016, as shown in the consolidated financial statements as of and for the fiscal year ended December 31, 2016 Entities classified as discontinued operations: Banco ProCredit El Salvador and Banco ProCredit Nicaragua in the balance sheet-related information, and ProConfianza Mexico, Banco ProCredit El Salvador, Banco ProCredit Nicaragua, and Banco Pyme Los Andes ProCredit Bolivia in the profit and loss-related information. Note: Unless indicated otherwise 42

43 Contact Investor Relations Contact details Financial calendar Investor relations ProCredit Holding AG & Co. KGaA Nadine Frerot tel.: Media relations ProCredit Holding AG & Co. KGaA Andrea Kaufmann tel.: Date Place Event information Interim Report as of 30-Jun-17, Analyst Conference Call Frankfurt/ Main DVFA 15th DVFA Autumn Conference Munich Berenberg and Goldman Sachs 6th German Corporate Conference Quarterly Statement as of 30-Sep-17, Analyst Conference Call Frankfurt/ Main Deutsche Börse German Equity Forum

44 Disclaimer The material in this presentation and further supporting documents have been prepared by ProCredit Holding AG & Co. KGaA, Frankfurt am Main, Federal Republic of Germany ( ProCredit Holding ) and are general background information about the ProCredit group s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation and further supporting documents, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. This presentation and further supporting documents may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to the ProCredit group s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. ProCredit Holding does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside ProCredit Holding s control. Past performance is not a reliable indication of future performance. 44